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  #21  
Old 03-26-2012, 12:04 PM
normando normando is offline
 
Join Date: May 2009
State: California
Professional Status: Certified Residential Appraiser
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I was in similar situation in that I got tired of commercial work. I didn't like working on a file for at least a week. I preferred the "slam bam thank you mam" in residential work. I see property and finish it in 1-2 days. So I produce at least 1 report a day and earn near 5 digits monthly. It's still hard work because I have to juggle my workload and meet a general deadline. I like working on my own. If you go on your own, you need to have a stable source of orders so you should contact well paying lenders/AMCs.
Right now, the mortgage rates have increased, thus orders are fewer but I still have work. I just can't be as selective as before and I look at this time as a break. Be prepare for ups and downs in this business.
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  #22  
Old 03-26-2012, 12:38 PM
Lakefront boater's Avatar
Lakefront boater Lakefront boater is offline
 
Join Date: Jul 2006
State: Michigan
Professional Status: Licensed Appraiser
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Originally Posted by donniebravo View Post
Thanks all for your thoughts. I guess I will suck it up and stay where I am at for now. If I can do a few more years with them and get my MAI I know it will be worth it. I am just having a tough few days...
This is the best advice and it's from yourself (who else knows best?)

The MAI will put you in another league and your bosses advice was probably closer to what will happen to the residential side of things than many of us want to admit, especially post UAD many prognisticators are saying it's writing on the wall.
  #23  
Old 03-26-2012, 07:48 PM
matt381 matt381 is offline
 
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State: Indiana
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I know I'm a Nubbie and I'm not trying to ask a dumb question, which there most definately is by the way, but I do not understand how the residential appraisal business can cease to exist. I understand some lenders use AVM's but I do not see how the AVM's would be possible without us. Aren't we the ones that collect the data to be entered into the AVM? Why do some of you think the residential side of appraising is doomed? (I'm genuinely asking not being smart)
  #24  
Old 03-27-2012, 12:36 AM
Lakefront boater's Avatar
Lakefront boater Lakefront boater is offline
 
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Originally Posted by INMatt View Post
I know I'm a Nubbie and I'm not trying to ask a dumb question, which there most definately is by the way, but I do not understand how the residential appraisal business can cease to exist. I understand some lenders use AVM's but I do not see how the AVM's would be possible without us. Aren't we the ones that collect the data to be entered into the AVM? Why do some of you think the residential side of appraising is doomed? (I'm genuinely asking not being smart)
MLS's report the closed sales, there a few companies which actually own the platform that provides many local boards it's MLS platform. Paragon is an example of an MLS platform used all over the place (LSI, Corelogic are involved in the MLS biz in a great big way).

The data can be put into a model and updated as so forth, it's not far fetched at all. None of us can tell what the future will be but the possibilities are there and the probabilities are gaining odds.
  #25  
Old 03-27-2012, 03:01 PM
fractal7221 fractal7221 is offline
 
Join Date: May 2011
State: Pennsylvania
Professional Status: Banking/Mortgage Industry
Posts: 615
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Quote:
Originally Posted by INMatt View Post
I know I'm a Nubbie and I'm not trying to ask a dumb question, which there most definately is by the way, but I do not understand how the residential appraisal business can cease to exist. I understand some lenders use AVM's but I do not see how the AVM's would be possible without us. Aren't we the ones that collect the data to be entered into the AVM? Why do some of you think the residential side of appraising is doomed? (I'm genuinely asking not being smart)
FIRREA would have to change its stance on AVMs before that happens. I wouldn't be surpirsed to see something like CVRs take over one day down the road. With the speed at which computing and processing power is increasing, its only a matter of time before computers can better process all the relevant marekt data faster than a human can. Though an actual person will still be needed at the helm for the intangibles for a while.
  #26  
Old 03-28-2012, 12:15 PM
normando normando is offline
 
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State: California
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I have been in business for a long time and I have heard so many times that AVMs will replace appraisers. The technology is still not there yet and you still need an appraiser to view a property to accurate determine value.
I prefer to look at the property first and then seeing the whole picture, I know which comps are suitable and given more weight. Computers can't do that.
Also, appraisers can not be outsource so lenders need us. As an appraiser, I prefer to appraise in tract areas on level terrain (so much easier). Instead when you have hilly terrain, it's more difficult with useability of land and views.
Appraisers are still the best computers in analyzing properties.
  #27  
Old 03-28-2012, 02:39 PM
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David Wimpelberg David Wimpelberg is offline
 
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Location: Hamptons, NY
State: New York
Professional Status: Certified General Appraiser
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Originally Posted by normando View Post
I have been in business for a long time and I have heard so many times that AVMs will replace appraisers. The technology is still not there yet and you still need an appraiser to view a property to accurate determine value.
A big issue has been, and continues to be, high LTV ratios. As long as people are borrowing the maximum amount of money they possibly can, lenders are going to need as precise a valuation as possible. This affects whether or not the loan will be made, whether PMI is needed or not, if a higher loan rate is appropriate, etc. An AVM with a 10%-20% +/- range isn't going to suffice...and I'm being kind; I've seen PLENTY of AVMs outside of this range.

If people were only borrowing 50% of the property value or less (for residential properties), I might think differently.
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